NSW voters are one step closer to knowing who "A Co" is

On 24 June 2014, the NSW Independent Commission Against Corruption (ICAC) issued a summons to “A Co” requiring the production of certain documents, relating to email accounts and electronic calendars, in accordance with s 35(1)(a) of the Independent Commission Against Corruption Act 1988.

“A Co” went to the NSW Supreme Court in August 2014 unsuccessfully seeking to quash the summons. The court concluding: There is nothing in the material before me or otherwise to support a conclusion that the Commission's decision to issue the summons miscarried, that the permissible scope of a summons issued under s 35 of the Act has been exceeded or that the law pursuant to which the summons was issued was otherwise invalid on constitutional grounds. In those circumstances, the plaintiff's challenge to the Commission's summons should be dismissed.

“A Co” then appealed the Supreme Court judgement in A v Independent Commission Against Corruption [2014] NSWCA 414 and lost on 5 December 2014, with the court continuing the suppression of the identity of the (a) the applicant or (b) the person whose electronic records are sought to be produced to the ICAC  until public release of any ICAC report of the investigation to which the summons to produce relates, or until further order of this Court.

As ICAC will not be issuing reports on any investigations ahead of the hearing of Independent Commission against Corruption v. Cunneen & Ors S302/2014 in the Australian High Court on 4 March 2015 and subsequent judgment, there are some months yet to wait on any unmasking of “A Co”.

Thereafter, the Streisand Effect may possibly come into play.

Revealing a basic limitation of regional employment services contracted by the Abbott Government - they can't do much if the jobs aren't there

The new Australian Minister for Social Services Scott Morrison has begun to talk up the need to raise the retirement age to seventy years of age and make people under thirty wait six months for the dole, stating that he would be actively engaging with the Senate to get the additional bills through in the new year.

Clearly he has not looked beyond his own rigid personal and political ideologies. 

This excerpt from a 29 December 2014 article in The Northern Star clearly demonstrates the limitations of employment services contracted by the Abbott Government in regional areas:

Murwillumbah resident Ainslie Meiklejohn-Griffiths, 29, has an honours degree in sociology and yet struggled to find work for more than 18 months in her chosen field.

Well-suited to working in the community, social services and local government sector, she never progressed to the interview stage of several short-term contract positions.

This despite her achieving first class honours at Griffith University with her marks ranking her in the top 5% of the university.

"With my Arts degree I also had 100 hours of volunteer service working on policy development at a PCYC," she said.

"I was looking for social work jobs, youth jobs, office work, anything to do with writing."

Ms Meiklejohn-Griffiths' job search took in an huge area from Lismore to north of Brisbane.

"I was well aware I'd have to travel to work," she said.

"I'd accepted that challenge but I was still looking - fruitlessly."

Working with a case manager from a local employment agency was a waste of time - the only jobs available were shelf-stacking in supermarkets or fast food service roles.

"They didn't even find me those jobs, but being a jobseeker and not liking having no money, there were the jobs I was already applying for off my own bat."

"It was a waste of time for everyone involved.

"I didn't want to be in that position but I was - it was a waste of services."

The fact of the matter is that the Northern Rivers region the industry pool which provides employment is limited and both unskilled and skilled jobs are not always available.

Something the Social Services Minister will probably fail to either recognise or fully appreciate given his political history in government and personality profile – making him more likely to see only the negatives in these Northern Rivers regional employment statistics:

Coffs Harbour-Grafton regional area employment statistics for May 2014 (taking in the state electorates of Clarence (69%), Coffs Harbour (100%), and Oxley (18%):

Employment grew by an average of 1.8% annually between 2000 and 2014. Across NSW the average annual growth was 1.4%.

Overall unemployment rate - 6.3% (Rank 13). Regional NSW overall unemployment rate - 6.2%.

Overall labour force participation rate – 56.6%. Regional NSW overall labour force participation rate – 58.9%.

Youth unemployment rate - 10.3%. Regional NSW youth unemployment rate - 12.5%

Youth labour force participation rate - 68.0%. Regional NSW youth labour force participation rate - 67.8%

Proportion of local employees in part-time positions - 40%. Regional NSW - 33.6%.

Richmond-Tweed regional area employment statistics for May 2014 (taking in the state electorates of Ballina (100%), Clarence (31%), Lismore (91%), and Tweed (100%):

Employment grew by an average of 1.6% annually between 2000 and 2014. Across NSW the average annual growth was 1.4%.

Overall unemployment rate – 7.2% (Rank 5). Regional NSW overall unemployment rate - 6.2%.

Overall labour force participation rate – 55.7%. Regional NSW overall labour force participation rate – 58.9%.

Youth unemployment rate – 11.5%. Regional NSW youth unemployment rate - 12.5%.

Youth labour force participation rate - 77.5%. Regional NSW youth labour force participation rate - 67.8%/

Proportion of local employees in part-time positions – 41%. Regional NSW - 33.6%.

Coalition ministers at both state and federal level have a tendency to fail to realise that labour force participation rates and youth participation rates have both risen since 2000 within what is essentially a small Northern Rivers industry pool and, to ignore the fact that veterans/aged pensioners make at least half of the 38.2% of the region’s population over 15 years of age receiving cash transfer payments from the Commonwealth.

The real productivity picture for the Northern Rivers shows how hard the region does work to make its own prosperity:

Across a range of industries, the numbers show that the value of the saleable product per employee is significantly higher than average.

Our 12,900 retail trade workers boost the local economy by $64,674 every year, compared to the state average of $58,697 and national return of $62,282.

Another of the stand-out numbers shows how amazingly competitive our local manufacturing is. Each of our 6,538 manufacturing employees contributes $167,126 to our local economy, far surpassing the state and national averages of $135,674 and $118,609 respectively.

At the big end of town, although our numbers are below the average, these industries are still huge contributors to the local economy: the information, media and telecommunications workers flow back $214,920 each (compared to state $255,486 and national $232,875) and every financial and insurance services worker brings $319,987.

It would be a tragedy if, in driving the Abbott Government’s fascist ideology forward, Scott Morrison broke this region’s will to succeed against the odds.

Has The Daily Examiner editor drunk the National Party kool aid?

Opinion in The Daily Examiner on Page 7 of the 1 January 2015 issue:

Happy New Year, and welcome to 2015.

It promises to be an exciting time for the Clarence Valley, with the pending start to work on the Pacific Hwy upgrade, including a second crossing of the Clarence at Harwood, as well as the start to the second bridge at Grafton.

The announced injection of Federal and State funding for these projects is unprecedented and seems certain to have a highly positive impact on the Valley economy.

Local residents could do a lot worse than to make their new year's resolution coming up with a way to be part of the economic boost heading our way.

You don't need to know how to build a bridge or drive a dump truck to take advantage of the big projects.

Many businesses and service suppliers are poised to benefit from the boost to employment and the economy.

Schools could see an enrolment lift and landlords could be in for a golden period.

Just like a resolution to lose weight, however, those who benefit most from the construction boom will be those who work hardest and are best prepared.

The Daily Examiner reported on 11 December 2014 something which a look at NSW Roads & Maritime Service’s website confirms in January 2015, the second Grafton Bridge has not yet received approval:

CONSTRUCTION of a second bridge for Grafton is in limbo with no announcement yet on when works will begin.

A spokeswoman from Roads and Maritime Services said there would be "no comment" on the proposed bridge while the project was under review by the NSW Department of Planning and Environment.

Meanwhile a spokesman from the Grafton Chamber of Commerce and Industry has raised concerns that an election promise, made in 2011 by the (then) Deputy Opposition Leader and Leader of the Nationals Andrew Stoner as well as current Clarence MP Chris Gulaptis, will not be met.

Des Harvey, board member of the Grafton Chamber of Commerce, said the community deserved clear answers.

"Given it is already December 2014, and the construction industry typically winds down for Christmas and the January holiday period, the Grafton Chamber is very concerned the deadline of 28 March 2015 for commencement of construction will not be met as promised," Mr Harvey said.

"People stop and ask me in the street - what's happening? - at the end of the day we want to see actual construction; we want to see tractors digging holes."

Mr Harvey acknowledged the project had progressed significantly, but he also noted that $177 million had been allocated for construction in the current term.

"I know plenty of work has already been done but the election is getting closer and the problem hasn't gone away," he said….

The second crossing of the Clarence River at Harwood is still at submissions from the community stage at this time, with tenders for preliminary first stage of soft soil treatment still being assessed.

Tenders are still being assessed for preliminary soft soil work on the Pacific Highway upgrade between Woolgoolga and Ballina generally.

This year is unlikely to see the hoped for golden period for the Clarence Valley - more likely there will be a slow trickle of employment opportunities in the second half of 2015.

Of course, if as is likely, the Baird Coalition Government is returned at the 28 March 2015 state election with a comfortable majority then any perception of political urgency in Macquarie Street will have subsided.

Then the federal funding earmarked for 2013-14 and the state's $395 million earmarked for 2014-15 may be the only funding not pushed forward past 2016-17 in this year's state budget papers, where such deferred spending would sit with further promised federal funding listed in forward estimates past the end of the Abbott Government's current (and perhaps only) term in office. 

Abbott Government now considering telling different sets of political lies to Australian electorates based on the states in which they are located?

Simon Letch 28 November 2014

The voice of political desperation can be heard in this article in The Australian on 30 December 2014, as the Abbott Government begins to reap what it so assiduously sowed in both Opposition and Government under Tony Abbott and, one MP floats the idea of tailoring the rationales put forward, perceptions aired, arguments used, lies told, as a magic political antidote to Liberal-Nationals woe:

Victorian Liberal MP ­Michael Sukkar, who holds the marginal Melbourne seat of Deakin, said the electorate had a “misalignment of expectations’’ about the government’s ability to turn around the economy in just over a year. He said the government needed to communicate its agenda to voters better and tailor the political argument differently when addressing the southern and northern states.

“We all just have to explain our rationale for the decisions we’ve made a lot better,’’ he told The Australian.

Based on the current anti-Abbott backlash in Victoria, Liberal strategists believe the seats of Deakin (3.2 per cent), Corangamite (3.9 per cent), La Trobe (4 per cent) and Dunkley (5.6 per cent) will fall. That could leave the Coalition holding just 12 of Victoria’s 37 federal seats. Casey (7.2 per cent) is also at risk.

In South Australia, Hindmarsh (1.9 per cent) would be a Labor gain on current voting intentions and the safer seats of Boothby (7.1 per cent) and Sturt (10 per cent) are also at risk amid angst over the collapse of the car industry and broader economic uncertainty. This could leave the Coalition with just three of South Australia’s 11 federal seats.

Labor has not held Dunkley since 1996, Sturt since 1972 and Boothby since 1949.

Sturt is held by Education Minister Christopher Pyne, who is one of the government’s most prominent members, and he is set to be targeted by unions over his support for budget cuts.

Senior Liberal strategists have told The Australian that anti-­Abbott sentiment is “profound’’ in Victoria and was key to last month’s state election defeat. “You are looking at a bloodbath in Victoria,” a senior Liberal said. “Seats will fall and any gains we made in 2013 will be wiped out.”…..

In South Australia, both major parties accept that three federal Liberal seats are vulnerable if Mr Abbott’s popularity does not vastly improve.

The seat most at risk is Hindmarsh, which covers Adelaide’s inner western suburbs. Hindmarsh had been held by Labor’s Steve Georganas since 2004 but was wrested away at the last election by Liberal Matt Williams.

Mr Williams said he was concerned about the impact of anti-Abbott sentiment in South Australia and said funding cuts, including to industry, had been having a negative impact.

“We have to address that negative perception and get the facts out there so the public become better aware,” he said. “The agenda is dominated by a state Labor government and ministers constantly speaking about federal issues. In regards to defence shipbuilding, I have raised the issue of defence projects for South Australia with the Prime Minister. We have to be a bit more optimistic in terms of what opportunities there are going forward.’’

The comments come after an analysis of Newspolls from October to December showed a marked shift over 12 months.

The analysis found the Coalition ahead only in Western Australia and trailing 60 per cent to 40 per cent in Victoria.

If Newspoll were replicated at a federal election, seven seats would fall in Victoria alone. The Coalition holds 90 seats in the 150 seat parliament, Labor 55.

Some Metgasco Limited shareholder disquiet over merger with Elk Petroleum

From the HotCopper MEL forum on 29 and 30 December 2014:

As doctornoh raised in post #14500228 the MEL Board notes that "Metgasco has applied to the ASX seeking in-principle advice as to whether ASX will exercise its discretion to require Metgasco to seek shareholder approval to proceed with the transaction, and if so, whether ASX will require re-compliance with Chs 1 and 2 of the Listing Rules. Having regard to the circumstances of this transaction, Metgasco does not presently intend to seek shareholder approval unless ASX requires Metgasco to do so;"

This is perhaps surprising as it indicates MEL may not have, as recommended by Section 2.8 (a) of Guidance Note 12, applied for in-principle advice from ASX about the application of Listing Rules 11.1.2, 11.1.3 or 11.2 to the transaction before proceeding with the transaction. 

This may indicate that MEL is hoping to pressure the ASX into just waving the transaction through.

Of course one of the easiest methods to ensure that the ASX did not require re-compliance with Chapters 1 and 2 of the Listing Rules would have been to ensure that shareholders had sufficient information about the proposed transaction for trading to be occurring on a reasonably informed basis or to seek shareholder approval of the transaction as permitted under the Guidance Note.

Of course, the Board and management of MEL (either through ignorance or deliberately) seem to have previously adopted a relatively caliver [sic] attitude to the Listing Rules. Even with this most recent announcement, as an oil and gas exploration entity that is not earning any material revenue from operations, MEL appears to have ignored the recommendation of Section 2.8 of Guidance Note 12 and failed to provide any indication of annual expenditure that will result from the proposed arrangement with ELK.

In addition, for the AGM in 2013, in an apparent attempt to inhibit the challenge from disaffected shareholders, the Board issued papers calling the AGM, ignoring the requirements of the Listing Rules to provide 7 days notice of this intention. To further compound this failure, the Chairman then assured all shareholders at the AGM that the Company had fully complied with the requirement for the 7 days notice.

It is also well known that anti csg protestors in the Northern Rivers (perhaps with little justification) have complained that MEL may not have fully complied with the continuous disclosure requirements in relation to the provision of advice as to the extent of protestor activity in the MEL area of operation.

In the absence of significantly more information, it is very difficult for MEL shareholders to determine whether the transaction is in their best interests. While it is likely the Independet [sic] Experts' report prepared for ELK shareholders will provide substantially more detail, the purpose of this report is not for the benefit of MEL shareholders. The transaction may well represent a substantial opportunity for MEL shareholders, but on the surface there appear to be significant questions. The main asset being acquired, the Grieve EOR development, appears to have a very troubled history. It appears that ELK initially believed total field expenditure of less than USD28.6 million was required before the development became cash flow positive. Currently total field expenditure stands at USD70 million and it is forecast that there is at least two more years before first oil production and any chance that the project could become cash flow positive. Initial pressurisation of the field commenced one year later than originally planned and first oil is now forecast to be running up to three years later than initially planned.

There is no doubt that the transaction represents a significant change to the scale of MEL’s activities. 

Read the full comment here.

Thought I might shortcut the need for research on ELK's prospects and look at what shareholders have been saying on HotCopper. Well it was truly depressing, ELK seems to have a long history of optimistic promises and then, not just under delivering, but totally failing to deliver at all.

One indication of the very low enthusiasm for the stock can be gained from looking at the last Company’s Share Purchase Plan which closed on 16 July 2014. The SPP provided for all shareholders to subscribe for up to an additional $15,000 worth of shares at an issue price of $0.12 per share with subscriptions capped at $3,000,000. There was also one free option attached to each share acquired. So 25,000,000 shares were on offer. But only 2,600,000 shares, just over 10% of those on offer were taken up by shareholders. Only two (of the five) directors took up the offer and then at less than 50% of their entitlement. Of course it didn't help that the ELK share price was only $0.13 at the time the SPP was announced and then promptly dropped below the $0.12 offer price and stayed there for most of the offer period. And the ELK share price has never been above $0.12 since.

Great vote of confidence by the apparently badly disillusioned shareholders. Further it looks like the underwriters and sub underwriters bailed, taking up only $688,000.08 of the underwritten $1,000,000. One sub underwriter for $150,000 looks like they bailed totally.

But the other interesting thing is that only one of ELK's long term posters has bother [sic]  to post anything to HotCopper about the merger. Maybe they are all laying low, hoping like Christ that the merger goes through. The register is dominated by large holders, with the top twenty holders at 30 June 2014 holding 60.63% of the issued shares. This is a little down on the 64.28% held by the top twenty at 30 June 2012 but substantially up on the 39.62% held on 30 June 2005 just after listing…..

The AUD1.25 million loan due to be repaid on 8 January 2015 was from private individuals, likely to include some of same large shareholders from the top twenty. 

It is beginning to look like the MEL proposal may have more to do with giving these large shareholders a way out of ELK rather than any grand opportunity for MEL. And it certainly guarantees repayment of the AUD1.25 million loan which was looking very shaky indeed. Maybe MEL is looking at these grateful shareholders to provide the proposed March funding.

Read the full comment here.

It would appear that the market also shares investor doubts, as the merger announcement failed to break Metgasco's ordinary share price out of the 4 cent doldrums it has been in since November 2014.

While the Federal Government remains gloomy about the gas industry as a whole: 

“Every oil and gas company in Australia will be cutting back on its exploration and development with oil prices sitting at $60” [Resources Minister Ian Macfarlane in The Australian, 3 January 2015]

BACKGROUND

Elk Petroluem Limited was registered in West Australia on 19 January 2005.

Its principal place of business since December 2011 is Suite 4, Level 9, 31 George Street, Sydney NSW.

Current directors are Anthony James Strasser of North Bondi NSW, Matthew Healy of Chatswoood NSW and, Neale Forest Taylor (Executive Director and Chairman) of Casper, Wyoming USA.

The company has oil interests in Wyoming and Nebraska USA it is seeking to progress.

According to the Annual Report 2014, the company has a number of wholly-owned US subsidiaries: Elk Petroleum Inc LLC,  Grieve Pipeline LLC, North Grieve LLC, Natrona Pipeline LLC and Elk Operating Company LLC.

The company’s largest shareholders as at 20 September 2014 were:

Clarence Valley Council draft customer service policy

Clarence Valley Council has released its Draft Customer Service Policy and invites comment until 30 January 2015.

Local residents and ratepayers who have frequent contact with the third tier of government should read this document for the comic relief.

In part it states that Council commits to:

Formally recognising that our customers are our first priority and nothing is more important than keeping our customers informed and providing accurate and timely responses to customer requests for information or services.

Developing a customer first culture throughout the organisation by providing staff with the tools they need to deliver excellent customer service including training and education and access to the appropriate systems, processes and technologies.

Ensuring equitable access to council services and information for all customers regardless of disability, ethnicity, language or age.

Regularly reviewing and updating the portals used for customer contact by seeking customer feedback on preferred contact methods, staying abreast of technological advancements, reviewing internal processes and procedures as necessary.

Developing measurable service standards for customer contact to guide officers in their dealings with customers, to provide certainty for customers on when they can expect their requests to be responded to and to ensure that standards are consistently being met.

Upholding the provisions of the Government Information (Public Access) Act 2009,and the National Privacy Act, including maintaining confidentiality for customers in all matters in strict accordance with those statutes.

Promoting mutually respectful and courteous interactions between customers and Council staff by applying Council’s Code of Conduct to the actions of staff and by protecting, supporting and equipping our staff to manage customers who display an unacceptable level of rudeness, profane language or aggression towards them.

Prompt and efficient services.

 Easy access to our services.

Friendly, professional service.

Accurate and consistent information.

In return Council asks that residents and ratepayers:

Treat our staff in a polite and respectful manner;

Be honest and accurate in your dealings with Council;

Work with us to solve problems;

Give us feedback on the things we do;

Respect community property.

Now this is a good policy and many ordinary members of staff and their 'customers' already interact well and within these guidelines.

However, Clarence Valley Council's executive and senior management have forgotten one basic truism - a fish rots from the head down and local government has been on the nose for years.

I suspect that for them, this policy will only come into play when office politics become heated and vindictive.

So, all those journalists who have been shouted at by senior level management, all the ratepayers that have had to fight to get any sort of written answer to their concerns, all the objectors to a development or rezoning application who were supplied with unconscionably late, incomplete, inaccurate or downright misleading information, as well as those that have joined the ranks of what appears to be a veritable multitude down the years who have been threatened with defamation for daring to raise issues – guffaw loudly in chorus now.

You’ll shake the eaves!

While North Coast Voices blog was on holidays the Northern Rivers once again showed its heart......

Letter to the Editor in The Northern Star on 27 December 2014 at Page 17:

Drought relief

On Saturday December 6, 567 Christmas hampers plus boxes of toys and gifts left the Eltham Hall and headed out to drought-stricken farming families with everything having been donated by the caring community of the Northern Rivers. Once again the response was amazing, not only the food; toys; gifts; laundry and toiletry products; but the boxes in which they were packed courtesy of Amcor; the freight as usual by Tamex whose local agent is Greg from Lismore Tenterfield Transport; the forklift and truck supplied by Mills Transport and driven by Dave their transport manager. The boxes were all loaded onto pallets once again by the wonderful Clunes RFS.

Thanks must also go to those who made cash donations ranging from $20 to over $1000 into the drought account that enabled us to buy what was needed. Thanks also to the churches who donated, particularly the Uniting Church of Mullumbimby that donated 40 boxes of goodies; the Bangalow Anglican Op Shop and the Seventh Day Adventist Op Shop which both donated $500. Global Care from Ballina once again showed they really care!

Thank you to the wonderful children from Wollongbar and Modanville Public Schools whose teachers encouraged them to collect for the farmers. All the local Lions Clubs who generously donated cakes and cash, particularly Kingscliff, Byron Bay and the Bangalow Lions who facilitate the Drought Fund. Even the district governor and regional secretary who drove up from Port Macquarie with hundreds of cakes and puddings!

It is impossible to thank everyone, but you know who you are and you can rest assured that your kindness is already making a huge difference out there in the dry and dusty outback.

The appreciation is already being shown and one dear old farmer spoke to me of having his credit card rejected on $27 of groceries; he only had $11 left in the bank, so you can imagine how overwhelmed he was to receive his hamper!

Thank you everyone for making this appeal such a success, all the wonderful volunteers, particularly Karen Hagley who has been helping with this project for years; those who picked up and delivered (including my husband John) and helped to sort and pack. It was a lovely to meet you all and work with such great people.

Happy Christmas to you all.

ANNE THOMPSON

Organiser North Coast Drought Appeal